On the balance of probabilities if you own a flat in Deal you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Deal leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Edward owned a 2 bedroom flat in Deal being marketed with a lease of fraction over sixty years remaining. Edward on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2014 we were approached by Mr and Mrs. H Pérez who, having completed a one bedroom flat in Deal in August 2007. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparative flats in Deal with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 18 January 2105. Given that there were 79 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Last Summer we were phoned by Mrs Nicole Watson , who acquired a recently refurbished apartment in Deal in October 1995. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparable homes in Deal with an extended lease were worth £275,000. The average amount of ground rent was £45 billed monthly. The lease end date was on 4 July 2095. Having 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.